Theoretical budget and fiscal concepts applied to the Romanian public sector

• Author: Ialomizianu R.G.
• Pages: 257-266

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 10 (59) No. 2 - 2017

Theoretical budget and fiscal concepts applied to the

Romanian public sector

Răzvan Gheorghe IALOMIȚIANU1

Abstract: This paper examines the concepts of budgetary revenues and expenditures, public

deficits and indicators of the efficiency of budgetary resources as applied to the Romanian

public sector. The causes of public deficits and public debt are also investigated, with the

associated tools and techniques used to finance them. Some policy recommendations are

made – regarding a better collection of taxes to the state budget (based on the contributory

capacity of the population and on the principle of equivalence) and a more prudent

government intervention in the economy. A new approach to the fiscal policy is proposed,

acting as an incentive to rethink it on a more sustainable and transparent base.

Key-words: public sector, fiscal policy, deficits

1. Introduction

The topic chosen for analysis is of great importance, given all the debates related to

fiscal responsibility. The Government is responsible to carry out the fiscal and

budgetary policy and to manage budgetary resources, obligations and fiscal risks in

a manner that ensures sustainability of the fiscal position in the medium and long

term. As fiscal policies form a field of research that deals with public revenue and

expenditure problems, the importance of the topic is reflected through the

macroeconomic imbalances and lack of economic stability that Romania faced in the

past years due to poor fiscal policies implemented in the last 15 years.

I chose to approach this subject because fiscal policies play a very big role in

the economic growth and welfare of society.

The research objective proposed in this paper is to determine the impact of

fiscal policy on economic growth. Before the economy crisis, the public sector

implemented repeatedly the wrong fiscal policies that led to a decrease in economic

stability. Nowadays, in Romania, the public sector is interfering more that it should

in the economy, changing the fiscal policies implemented too often and without

transparency.

1 Transilvania University of Braşov, ialomitianu.razvan@yahoo.com